Every time you venture to your mailbox, you’re likely to find that your credit card company is offering a new rewards card. While such cards may be considered lucrative for the perks they offer to card holders, they can indeed prove troublesome when used improperly or excessively. This article will explore both the pros and cons of rewards cards, and will guide consumers into effective usage methods to ensure that they garner the most benefit from their rewards card.

The initial question which most consumers share is “What is a rewards card?” A rewards card is simply a credit card that offers consumers rewards for usage. These rewards can range from free airfare mileage to free hotel stays. Although the word “free” tends to resonate quite well with consumers, it doesn’t always justify enrolling for another rewards card or upping the usage of an existing one. You may be paying additional money for you free trip and whatnot by using your rewards card than if you were to pay for the trip upfront.

In the context of rewards cards, not all cards are created equal. Some will simply lure you in and ding you without your knowledge. On that note, here are some of the things you should avoid when selecting a rewards card.

High Interest Rate – The majority of rewards credit cards come bundled with inflated interest rates, even more so than traditional credit cards. As you might imagine, the inflated rate is used to offset the cost of the reward which you think you’ll be getting for “free.” If you’re not careful, you may fall into this reward card trap. Thus, whenever considering an offer, be sure to be critical of the rate offered by the card. If it’s excessive, don’t allow yourself to be blinded by the 3-night stay in Cancun. Exercise some restraint and you should manage.

Fixed vs. Variable – Check and double check the sort of interest rate your credit card company offers, whether it be fixed or variable. With fixed rates, your credit card company doesn’t have the opportunity to raise the rate when they wish. However with a variable rate, you have not such luck. Stick with fixed rate rewards cards. Credit companies can pull a bait-and-switch tactic by offering you a variable rate card at a low percentage, and can then switch the interest rate after you’ve enrolled.

Annual Fees – Again, credit card companies can afford to pay for your perks by upping a specific card’s annual fees. Be on the lookout for such inflated fees and avoid cards that are charge noticeably more in annual fees than their counterparts.

While finding the right rewards card can be hassle, there are many rewards to be reaped from having the right one. Below you will find some of the perks that are available to rewards credit card holders.

Redeemable Points – Many rewards cards work a point system. With every transaction you make using the card, you accumulate some points. These points can be used to redeem various things, such as gift certificates, hotel stays, etc. Some card companies may make it difficult to accumulate the needed points for a specific thing you may have your sights on. If you know you’re not an avid credit card user, check whether the rewards card has a limit on the number of point-rewarding transactions you can make or whether there is restrictions that bind you to a specific time period for garnering points.

Cash Back Rewards – Currently, many rewards cards also offer cash back on purchases. A certain percentage of your collective expenditures is returned to you. The specific amount varies, but most rewards cards offer 1% cash back.

Frequent Flyer Miles – Probably one of the most common reward mechanisms for rewards cards is frequent flyer miles. For every expenditure you make, you are rewarded on a per point or mile basis (varies from card to card). When you accumulate the appropriate number of miles or points, you can redeem a free airfare for you or your family.

Frequent Flyer Credit Card Tips
Rewards cards that offer frequent flyer miles can be especially useful for those who are constantly traveling. They can get two things accomplished with a rewards card. They can build their credit while accumulating points towards air travel.

There are some downsides to having a frequently flyer rewards card, however. For one, to accumulate an adequate amount of points or miles, you need to use the rewards card rather extensively. This can prove rather difficult for the average consumer, and can thus be considered a trap which credit card companies place to trap unknowing consumers in. However, if you’re a frequent credit card user and traveler, this card may be for you.

Prospective card holders also need to be careful when reading the terms of the rewards card in respect to frequent flyer rewards. Some companies will limit the number of points or mile an individual can accumulate, or will set a specific time frame where point accumulation can occur. Thus, be diligent in reading all the fine print.

While these, as do other rewards card, have their drawbacks, they can be substantially rewarding to those who travel for a living. As said above, these sorts of cards can accomplish two or more things at a time when used effectively.

The Perfect Card for Me
You yourself are responsible for defining the perfect card for you. In general terms, however, you should look for a card that offers a low interest rate, low annual fees, and a fixed rate. However, the specific rewards mechanism is your choice. You should conduct adequate research before selecting your specific rewards mechanism, as far as time and other restrictions go.

A rewards credit card can without a doubt prove beneficial to most, if not all consumers. While there is some homework involved in uncovering the perfect card, it can well be worth it.

Rewards Credit Cards
	ANZ Frequent Flyer Platinum 19.89%  more» Receive 20,000 Bonus Qantas Frequent Flyer points

What is it about the word “budget” that scares off so many people? Budgeting your money is one of the smartest, most beneficial things you can do to help yourself and your family, especially during tight financial times. If you are in dire financial straights, and stressed out, that is exactly the time when you need to know where every penny is going, especially were credit cards are involved.

Oftentimes, when you ask a person who is in debt, “where did your money go?”, they haven’t the slightest idea. All they know is that they are having a hard time, are behind on bills, and wonder how to dig out of this money pit. There is a simple answer: budgeting your money!

A budget is a written map of where your money needs to go, when it needs to go, and how much money you have available to pay. There are software programs you can use to help with financial planning. They are a great way to begin your budget. Some even will allow you to schedule automatic online payments.

There are tools you can use to stay on a budget. First, and highly recommended, is a savings account. A savings account not only provides a buffer from unexpected expenses, it is a good service to help you plan for and pay for vacation holidays, a new TV set, and other items, without bills to pay out. You gain interest, and by making savings a regular habit, the amount grows painlessly. A good plan is to pay yourself first, right into your savings account.

A balance transfer may be an answer to managing your money. Frequently you can transfer your debts and end up paying less monthly than for the old lot of credit card statements. You will, of course, be paying over a longer term, but you may actually have a lower interest rate involved. Your credit rating can benefit from having the larger number of bills paid off. There are some caveats with a balance transfer; you do not want to pay off your credit cards and then run them up again before you pay them off.

Calculate a Budget Plan
You can do your own plan for budgeting your money right now! Just get a pen and piece of paper, and your bills together. Write down on each line, every bill, the due date and minimum payment, and the total due. Then total the columns. Now you know exactly how much you need per month, and in total for all your debts. Include rent, food, gasoline, and medical expenses as well as credit cards and loans. Then do the same type of listing for all income monthly.

FREE BUDGET WORKSHEETS FROM:

If your debt load is higher than your income, you have a debt problem and need to reduce payments, or refinance to where you are able to make all payments monthly. Once you develop your monthly budget of income and expenses, you will begin to feel better psychologically and become more confident that you can manage your own finances.

One of Australia’s most trusted financial providers St. George has an award-winning credit card for cost-conscious consumer called Vertigo.

Vertigo from St. George Voted Australia’s Cheapest Credit Card by Money Magazine in 2007 and 2008, St.George Vertigo Mastercard provides a great personal interest rate and a competitive low fee.

Any purchase your make with a St.George Vertigo Mastercard has a 55 day interest free period before a low interest rate of 11.74% is charged against your balance. It has a very low credit card fee of $55 per annum which rates amongst the lowest in all the credit cards available.

If you like to share your credit card with a family member, St.George offer a second credit card attached to the very same account for free.

With a no interest on balance transfers for 6 months, this credit card is perfect to transfer your current credit cards balance to help you manage your current credit card debt.

If you like getting benefits with your credit card, St.George Vertigo Mastercard offers discounts and added extras on Entertainment, Experiences, Shopping, Travel and Leisure, Wine and Magazine Subscriptions. This is a very special credit card because it has a low interest rate but still offers benefits usually found in more expensive rewards credit cards.

St.George is another lender which isn’t one of the big for banks in Australia; they are increasing competition in the credit card sector in which all Australians benefit from. Best Rate Credit Cards rates the St.George Vertigo Mastercard 5 stars.

Applying for your St. George Vertigo MasterCard is quick and easy with our secure application link. You must be at least 18 years of age to apply and have a valid driver’s license number, and proof of income. Applications are quick with an instant application response, so you can start enjoying your new card sooner.

St.George Vertigo MasterCard
0.99% p.a. balance transfer rate for up to 6 months Low variable purchase rate – just 13.24% p.a. ( 21.49% p.a. variable rate on cash advances) 0.99% for up to 6 months on balance transfers requested at card application Up to 55 days interest free on purchases when you pay the closing balance of your statement, including the balance transfer amount, in full by the due date Low annual fee – currently just $55
Purchase Rate	Interest Free	Annual Fee	Balance Transfer
13.24%	55 days	$55.00	0.99% for 6 months